China News by Thebittimes.Com

BRICS members Brazil and China have officially agreed to settle cross-border payments in local currencies rather than the US dollar. Brazilian authorities support expanding the use of national currencies and are looking at opportunities to increase the payment option. The Luiz Lula da Silva administration is gearing up to end reliance on the US dollar before the upcoming summit. Also Read: BRICS: New Country Rejects Local Currency for Oil, Wants US Dollar BRICS: Brazil & China Look at Local Currencies For Trade Settlements Source: iStock Both the BRICS members Brazil and China are drawing plans to push local currencies forward for mutual payments. Brazil’s Secretary of the Finance Ministry Tatiana Rosito said that some trade between the two countries is already being settled in national currencies and not the US dollar. Lula da Silva had previously stated that the alliance must slowly end dependency on the US dollar. Also Read: BRICS Considers New Financial Options For Trade Settl...

The de-dollarization agenda is advancing globally as like-minded countries are settling trade in local currencies and not the US dollar. In the latest, Russia and Kazakhstan mutually paid 80% of their trade in national currencies sidelining the US dollar. The development has strengthened ties between the two neighboring countries and are now aiming to continue the process. The move will add strain on the US dollar’s prospects as nations sideline it for cross-border transactions. Also Read: 5 US Commercial Sectors To Be Affected If De-Dollarization Advances Read here to know how many sectors in the US will be affected if the de-dollarization agenda grows stronger globally. The USD could lose out on the global supply and demand mechanism in the currency markets. If the demand for the USD dips, the American economy could face inflation where the costs of daily essentials could skyrocket. Also Read: Amazon Stock: Buy AMZN, Target $270 to $285 Amid AI Boom De-Dollarization: Russia & Ka...